Do rich people create jobs? Why the Vulture Captialist vision is WRONG for America

Dec 2010
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Do rich people create jobs?


One multimillionaire gives a controversial speech saying that only consumer demand, and not the wealthy class, will help jobs grow.

By MSN Money partner Thu 2:21 PM

By Jonathan Berr

Sorry, Republicans, but rich people are not "job creators." They never have been and never will be. No one ever invests in anything to create jobs. Employing people is a by-product of capitalism.

Those are the views of the venture capitalist Nick Hanauer, a multimillionaire who was recently invited to speak at a TED conference. The conferences are well-known gatherings featuring talks on a variety of topics and can be viewed online.

Update: Initially, Hanauer's speech was not posted online, which spurred a controversy that TED reacted to Thursday. The speech appeared on YouTube Thursday, and you can see it here.


Rich people don't create jobs, nor do businesses, large or small. What does lead to more employment is a "circle of life" like feedback loop between customers and businesses. And only consumers can set in motion this virtuous cycle of increasing demand and hiring. In this sense, an ordinary middle-class consumer is far more of a job creator than a capitalist like me.

Hanauer added this little zinger as well: "So when businesspeople take credit for creating jobs, it's a little like squirrels taking credit for creating evolution. In fact, it's the other way around."

[video=youtube;bBx2Y5HhplI]http://www.youtube.com/watch?v=bBx2Y5HhplI&feature=youtu.be[/video]

Do rich people create jobs?- MSN Money

Mr. Hanauer, very eloquently, debunks the right wing meme in this matter. I would further observe that, in doing so, he makes a very cogent (but tacit) case for why electing a vulture capitalist as President is an incredibly bad, and destructive, idea. The country doesn't need a national fire sale. Neither do we need to grant further concessions and breaks to a group of people who incorrectly ascribe the virtue of job creation to themselves. What we need is a vibrant and thriving middle class...which we most definitely WILL NOT get under any plans proposed by either Mr. Romney or Congressman Ryan. Rather than strip mining our economy, for the benefit of the few, we need to focus on rebuilding and restructuring the economy in a manner that is sustainable. This means eliminating the artificial gravitational pull and influence of large aggregations of money on the political and economic structures. Break up the too big to fail banks and companies. Eliminate much of the special (and wrong) privilege granted by taxing capital gains at a rate lower than income earned by labor and employment. Deincentivize offshoring of jobs by taxing the products produced offshore as imports. In short, undo all the BAD policies (or as Mr. Hanauer calls them upside down policies) of the last 30 years which have hurt middle class Americans and benefitted the very few rich folks.
 
Dec 2010
36,825
28,616
Virginia
Do rich people create jobs?


One multimillionaire gives a controversial speech saying that only consumer demand, and not the wealthy class, will help jobs grow.

By MSN Money partner Thu 2:21 PM

By Jonathan Berr

Sorry, Republicans, but rich people are not "job creators." They never have been and never will be. No one ever invests in anything to create jobs. Employing people is a by-product of capitalism.

Those are the views of the venture capitalist Nick Hanauer, a multimillionaire who was recently invited to speak at a TED conference. The conferences are well-known gatherings featuring talks on a variety of topics and can be viewed online.

Update: Initially, Hanauer's speech was not posted online, which spurred a controversy that TED reacted to Thursday. The speech appeared on YouTube Thursday, and you can see it here.


Rich people don't create jobs, nor do businesses, large or small. What does lead to more employment is a "circle of life" like feedback loop between customers and businesses. And only consumers can set in motion this virtuous cycle of increasing demand and hiring. In this sense, an ordinary middle-class consumer is far more of a job creator than a capitalist like me.

Hanauer added this little zinger as well: "So when businesspeople take credit for creating jobs, it's a little like squirrels taking credit for creating evolution. In fact, it's the other way around."

[video=youtube;bBx2Y5HhplI]http://www.youtube.com/watch?v=bBx2Y5HhplI&feature=youtu.be[/video]

Do rich people create jobs?- MSN Money

Mr. Hanauer, very eloquently, debunks the right wing meme in this matter. I would further observe that, in doing so, he makes a very cogent (but tacit) case for why electing a vulture capitalist as President is an incredibly bad, and destructive, idea. The country doesn't need a national fire sale. Neither do we need to grant further concessions and breaks to a group of people who incorrectly ascribe the virtue of job creation to themselves. What we need is a vibrant and thriving middle class...which we most definitely WILL NOT get under any plans proposed by either Mr. Romney or Congressman Ryan. Rather than strip mining our economy, for the benefit of the few, we need to focus on rebuilding and restructuring the economy in a manner that is sustainable. This means eliminating the artificial gravitational pull and influence of large aggregations of money on the political and economic structures. Break up the too big to fail banks and companies. Eliminate much of the special (and wrong) privilege granted by taxing capital gains at a rate lower than income earned by labor and employment. Deincentivize offshoring of jobs by taxing the products produced offshore as imports. In short, undo all the BAD policies (or as Mr. Hanauer calls them upside down policies) of the last 30 years which have hurt middle class Americans and benefitted the very few rich folks.
One of the memes Hanauer debunks is that giving more wealth to the wealthy stimulates the economy. He, correctly, observes that the rich DO buy things...but that they simply can't (and won't) buy ENOUGH or invest ENOUGH to offset the decline in middle class demand. It's IMPOSSIBLE. There aren't enough of the rich to do this, and even if there were the simple fact is that there is an inherent limit on what they will buy (typically described by the declining value of marginal utility).
 
Oct 2010
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1,160
Rich people don't create jobs, they accumulate wealth. Wealth, when used creates infrastructure that creates jobs.

What rich people do is "invest" in just enough infrastructure to allow wealth maximization - not job maximization mind you, creating jobs is a byproduct.

If we rioted and gathered up the 1%, took all their shit and turned it into infrastructure investment, then the jobs would be maximized.
 
Feb 2011
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happyfunville
"Demand" doesn't sign paychecks, the rich guy you work for does (or the taxpayer, if you're one of my public servants).
 
Dec 2010
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Virginia
Rich people don't create jobs, they accumulate wealth. Wealth, when used creates infrastructure that creates jobs.

What rich people do is "invest" in just enough infrastructure to allow wealth maximization - not job maximization mind you, creating jobs is a byproduct.

If we rioted and gathered up the 1%, took all their shit and turned it into infrastructure investment, then the jobs would be maximized.
Nope. Your inflammatory and incorrect post indicates you didn't actually listen to what Mr. Hanauer had to say, nor did you read the OP. Nowhere does he (or I) call for the expropriation of all wealth. What is being said is this: Rich people and businesses only invest in jobs if DEMAND is there. To argue that they are job creators is false. DEMAND (typically demand by the middle class) creates the need for employment...as hiring additional people is the LASt recourse of the businesses and investors. The policies of the last 30 years have focused on the WRONG segment of the economy because there is an incorrect meme out there (that investors and wealth create jobs rather than being a byproduct of demand). What is being advocated is an emphasis on the middle class and poor by shifting policies into a more productive structure. Rather than continue the failed policies of the last thirty years, we need to work on policies that increase demand. This means eliminating the choke hold great aggregates of wealth have on our political and economic structures. What Vulture capitalists (and the Republican Right as their champions) are offering us is more of the same bad policies, which won't stimulate the economy.
 

anonymous

Former Staff
Jun 2008
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Passing Through
we need to focus on rebuilding and restructuring the economy in a manner that is sustainable. This means eliminating the artificial gravitational pull and influence of large aggregations of money on the political and economic structures. Break up the too big to fail banks and companies. Eliminate much of the special (and wrong) privilege granted by taxing capital gains at a rate lower than income earned by labor and employment. Deincentivize offshoring of jobs by taxing the products produced offshore as imports. In short, undo all the BAD policies (or as Mr. Hanauer calls them upside down policies) of the last 30 years which have hurt middle class Americans and benefitted the very few rich folks.
This is so true but I would add the elimination of the FRB as a prerequisite.
 
Oct 2010
4,202
1,160
Nope. Your inflammatory and incorrect post indicates you didn't actually listen to what Mr. Hanauer had to say, nor did you read the OP. Nowhere does he (or I) call for the expropriation of all wealth. What is being said is this: Rich people and businesses only invest in jobs if DEMAND is there. To argue that they are job creators is false. DEMAND (typically demand by the middle class) creates the need for employment...as hiring additional people is the LASt recourse of the businesses and investors. The policies of the last 30 years have focused on the WRONG segment of the economy because there is an incorrect meme out there (that investors and wealth create jobs rather than being a byproduct of demand). What is being advocated is an emphasis on the middle class and poor by shifting policies into a more productive structure. Rather than continue the failed policies of the last thirty years, we need to work on policies that increase demand. This means eliminating the choke hold great aggregates of wealth have on our political and economic structures. What Vulture capitalists (and the Republican Right as their champions) are offering us is more of the same bad policies, which won't stimulate the economy.
Inflammatory?

Your bed shitting aside, I think the answer to your dilemma is in the content of your post.

What creates demands? If I'm out of work and can't afford a car, how can I come to afford one? That's right, get a job - but there are no jobs to be had? How do you create jobs and put this guy to work so he can buy a car (ie: demand)? Give him the infrastructure to work in.

Democrats and others are right about some things. The stimulus in theory is a good approach but like anything else our elected officials do, it's all about promoting their political agenda rather than creating jobs.

If you haven't noticed, our roads, bridges all suck. There is no money to fix them, governments are on the brink of bankruptcy for a number of different reasons. Fixing them would create jobs, thereby creating demand.

That concept can become somewhat complex but the crux of my point was that all of this accumulated wealth is in a state of inertia. It's sitting in the coffers of wealthy people who only release bits of it to further increase their wealth.

I think if you reign in your emotional reaction and think about it for a few minutes with a clear head it might make sense.
 
Dec 2010
36,825
28,616
Virginia
Inflammatory?

Your bed shitting aside, I think the answer to your dilemma is in the content of your post.

What creates demands? If I'm out of work and can't afford a car, how can I come to afford one? That's right, get a job - but there are no jobs to be had? How do you create jobs and put this guy to work so he can buy a car (ie: demand)? Give him the infrastructure to work in.

Democrats and others are right about some things. The stimulus in theory is a good approach but like anything else our elected officials do, it's all about promoting their political agenda rather than creating jobs.

If you haven't noticed, our roads, bridges all suck. There is no money to fix them, governments are on the brink of bankruptcy for a number of different reasons. Fixing them would create jobs, thereby creating demand.

That concept can become somewhat complex but the crux of my point was that all of this accumulated wealth is in a state of inertia. It's sitting in the coffers of wealthy people who only release bits of it to further increase their wealth.

I think if you reign in your emotional reaction and think about it for a few minutes with a clear head it might make sense.
And yet it is not I who engaged in inflammatory and emotion laden rhetoric. Your attempts to incorrectly ascribe such a value to my posts merely underscore the weakness of your own position.
 
Oct 2010
4,202
1,160
And yet it is not I who engaged in inflammatory and emotion laden rhetoric. Your attempts to incorrectly ascribe such a value to my posts merely underscore the weakness of your own position.
Translation: you still don't understand the point.

That's too bad.